BUILDING INCLUSIVE GREEN ECONOMIES: Stories of Change from The Poverty-Environment Initiative in Asi

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This publication brings together stories from the Asia Pacific region to demonstrate how this mainstreaming approach can be put into practice and the kind of results we can achieve. The post-2015 agenda promises to be a historical opportunity to adopt a more integrated approach to development, with poverty reduction and environmental sustainability at the heart of this new framework. As the vanguard of global economic and social development and home to the worlds most unique eco-systems, Asia Pacific has considerable responsibilities and opportunities to shape this agenda. The work of the UNDP-UNEP Poverty-Environment Initiative can serve as an inspiration to drive for change and to catalyze support and investments to achieve a truly sustainable development.

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  • 1 BUILDING INCLUSIVE GREEN ECONOMIES Stories of Change from

    The Poverty-Environment Initiative in Asia Pacific

  • 2014 UNDP-UNEP Joan Manuel Baleillas/FAO: Front cover photograph Munir Us Zaman/FAO: Back cover photograph

    This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holder provided acknowledgement of the source is made. The UNDP-UNEP Poverty-Environment Facility would appreciate receiving a copy of any publication that uses this publication as a source. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from UNDP and UNEP.

    The views expressed in this publication are those of the authors and do not necessarily reflect the views of UNDP and UNEP. The designation of geographical entities in this report, and the presentation of the material herein, do not imply the expression of any opinion whatsoever on the part of the publisher or the participat-ing organizations concerning the legal status of any country, territory or area, or of its authorities, or concern-ing the delimitation of its frontiers or boundaries.

    * All dollar ($) amounts refer to US dollars.* All figures have been rounded off to the nearest whole number

    This publication has been printed in 100% eco-fiber paper, using vegetable-based inks and other eco-friendly practices. Eco-fiber paper is a high quality, environmentally friendly fiber obtained from recycled materials.

  • BUILDING INCLUSIVE GREEN ECONOMIESHighlights from the

    UNDP-UNEP Poverty-Environment Initiative in Asia Pacific

  • Funding Partners

  • Director of PublicationPaul SteeleCoordinator

    Joyce LeeEditor

    Joyce Lee and Paul SteeleResearch support Jeongwhun Kang

    Production support Saranya Rojananuangnit

    Acknowledgements Authors, design, infographics and layout

    Marta Baraibar & Prashanthi Subramaniam

  • Foreword More than anywhere in the world, Asia has experienced phenomenal economic growth in the last quarter of a century. While this has pulled people out of poverty, the gap between the rich and poor has widened.

    This rapid growth has also come at a cost to our environment, such as air pollution, water contamination and scarcity, chemicals in soils and food and over- exploitation of forest and marine resources. This unsustainable approach to growth has significant and immediate impacts on people, particularly the poor and marginalized people whose livelihoods largely depend on natural resources. Climate change has already, and will continue to, intensify these problems especially for those living in small islands, low-lying coastal areas and deltas. If the issues of equity and sustainability are not properly addressed, this rapid growth will bring significant environmental and social challenges that could undermine the quality of future growth and human development.

    The UNDP-UNEP Poverty Environment Initiative (PEI) offers a unique way of tackling these issues together by offering policy options to governments on how sustainable use of natural resources can help reduce poverty and maintain economic growth. With strong support from six donors globally, PEI in Asia Pacific is working with nine countries to mainstream pro-poor natu-ral resource management into economic policies and decision making to achieve more inclusive green economies.

    This publication brings together stories from the Asia Pacific region to demonstrate how this mainstreaming approach can be put into practice and the kind of results we can achieve. The post-2015 agenda promises to be a historical opportunity to adopt a more integrated approach to development, with poverty reduction and environmental sustainability at the heart of this new framework. As the vanguard of global economic and social development and home to the worlds most unique eco-systems, Asia Pacific has considerable responsibilities and opportunities to shape this agenda. The work of the UNDP-UNEP Poverty-Environment Initiative can serve as an inspiration to drive for change and to catalyze support and investments to achieve a truly sustainable development.

    Nicholas RoselliniDeputy Regional DirectorRegional Bureau for Asia and the PacificUnited Nations Development Programme

    Kaveh ZahediRegional Director and Representative for Asia and the PacificUnited Nations Environment Programme

  • Contents

    Building the future we want : Glimpses of the post-2015 global development agenda

    Snapshot: Challenges in Asia and the Pacific

    Bangladesh Systems for channeling climate funds to local governments set up

    Bhutan Insurance scheme secures families from damages caused by human-wildlife conflict

    IndonesiaIndonesian Government pioneers budget system to track climate change-related expenses

    Lao Peoples Democratic Republic Environmental and Social Impact Assessments set to promote quality investments in Lao PDR

    8

    9

    11

    15

    19

    23

    27

    31

    35

    39

    43

    Myanmar Setting the foundation to attract quality investments

    Nepal Greening Nepals future: Environmentally Friendly Local Governance and green roads

    Philippines Revenues from natural resources help communities lead better lives

    Thailand Maize standards set the way for sustainable farming in Thailand

    MongoliaMongolias development vision turns the spotlight on mining reforms

  • UNDP-UNEP Poverty-Environment Initiative helps nine countries in Asia Pacific to achieve inclusive green economies through:

    Halt biodiversity loss, reverse land degradation, protect forests and terrestrial ecosystems

    Access to clean, affordable and sustainable energy for all

    Sustainable use of marine resources, seas and oceans

    Promote sustainable agriculture, achieve food security and end hunger

    Availability and sustainable use ofwater and sanitation for all

    Urgent action to combat climate change

    Building the future we want Glimpses of the post-2015 global development agenda

    Inclusive and sustainablesocio-economic growth for all

    Analysis and evidence for policy reforms Capacity building for institutional change Advocacy and communications to support

    policy implementation

  • BUILDING INCLUSIVE GREEN ECONOMIESStories from Bangladesh, Bhutan, Indonesia, Lao PDR, Mongolia, Myanmar, Nepal, Philippines, Thailand

    9

    Snapshot: Challenges in Asia and the Pacific2/3 of the worlds poor live in Asia and depend heavily on natural resources

    Inclusive green economies have the potential to offer better opportunities

    to the poor while preserving ecosytems

    Improvements in human development over the past decades have come with high environmental degradation

    Asia Pacifics ecological footprint 1961 - 2001

    of the coral reefs and mangroves have disappeared in the Coral Triangle, in the last 40 years ADB/WWF/GFN

    WWF/ADB/GFN

    Firewood accounts for 72% of all harvested wood in South East Asia and 93% of all harvested wood in South Asia WWF/ADB

    Between 481-579 million people depend on forests in South East Asia Forests Peoples

    40 %

    As the demand for wood and other forest products increases, so does the demand for ecosystem services, such as the availability of water and flood prevention by forested watersheds WWF/ADB

    of the total greenhouse gas emissions come from Southeast Asia. 75% of this can be attributed to land use change, including deforestation ADB/WWF/GFN 12 %Projected decrease in crop yields projected by IPCC in Central and South Asia ADB/WWF/GFN30 %

    % of the population dependent on natural resources

    90 % in Lao PDR MAF/2011 90 % in Nepal CIFOR/2012

    Unsustainable fishing practices have caused large declines in fish stocks. In the Gulf of Thailand and Malaysia, there has been a 40% decline in 5 years.ADB/WWF/GFN

    40 %

    500m

    Subsistence farmers, fishing communities, the rural poor and traditional societies face the most serious risks from degradation TEEB

    7.5 % predicted decline in total fish in the Pacific region under a medium emissions scenario ADB/WWF/GFN By 2100, the predicted economic loss due to climate change in the Pacific region would range between 2.9% to 12.7% of the annual GDP ADB/WWF/GFN

  • Bangladesh151.8 Population in millions ADB /2012 31.5 % Population living below the national poverty line ADB /2010

    Recent flood events in the Hindu Kush-Himalaya region ICIMOD/Riccardo Pravettoni, UNEP/GRID-Arendal/2012

    Climate Public Expenditure Review The results of the Climate Public Expenditure and Insti-tutional Review (CPEIR) in Bangladesh, revealed that the Government is currently spending $1bn a year, equivalent to 6 - 7% of its annual budget, on climate change adaptation activities. Every year, the increasing incidence of droughts, floods, cyclones and climate-linked disasters is affecting the health and livelihoods of people and damaging public infrastructure thus leading to mounting costs for the Gov-ernment.

    6 -7 %

    Note: Data for both killed and affected people may not be available for theevents shown.

    Sources: ICIMOD, 2010; Information on the occasion of World Environment Day, 2007; BBC Press review, 2010

  • Bangladesh

    BUILDING INCLUSIVE GREEN ECONOMIESStories from Bangladesh, Bhutan, Indonesia, Lao PDR, Mongolia, Myanmar, Nepal, Philippines, Thailand

    11

    Every year, with the pertinent arrival of the tropical monsoons, an unwelcome disquiet spreads its pall over Fulchhori Union in Gaibandha district, northern Bangladesh. The seasonal rains, with the characteristic image of flooded paddy fields, are usually a moment of celebration for those in the subcontinent. However, the 165,000 strong population of this zilla faces the prospect of erratic rainfall and the flooding of the Jamuna River that flows through the district. Flash floods, cyclones and soil erosion are commonplace in Bangladesh. Recognised as one of the poorest countries in the world, almost one-third of the population lives below the poverty line and more fall under a large bracket of the population heavily dependent on natural resources for their livelihoods. The country landscape is carved by numerous river deltas and houses many rare species of flora and fauna, some of them being highly endangered species endemic to the region. Bangladeshs vulnerability to natural calamities has placed it on the fifth spot of the top ten most vulnerable countries. It is estimated that by 2030, without adequate progress in curbing this, an additional 14% of the population will be extremely vulnerable to the ravages of climate change.

    With the countrys precarious situation becoming a heightened concern internationally, the Government of Bangladesh has begun actively devoting greater resources, skills and building leadership specifically towards community resilience and endurance to face natural calamities.

    Under the framework of the United Nations Convention on Climate Change, the Government set about drafting a National Adaptation Plan of Action that set precedence for climate change and sustainable development to become a key priority of the various development plans and in particular, the annual budgets of central and local governments.

    Research and public climate expenditure reviews, carried out with the support of PEI in Bangladesh, showed that on an average, around 6% to 7% of the Governments combined annual development and non-development budgets, amounting to a sum of $1 billion, was channelled towards climate-change related activities. It became important then to ensure that resources allocated for these projects were maintained and channelled in the most effective way possible so as to ensure the best results. In supporting the National Adaptation Plan, PEI in Bangladesh has been working on two key areas of disaster risk reduction and climate change adaptation, supporting 28 projects that aim to provide income opportunities and improve resilience of local communities to climate change vulnerabilities. The financing of these activities has forced the Government to readjust the manner in which domestic and foreign funds are being utilized.

    The National Climate Fiscal Framework is a consolidated platform for assessing the various foreign and domestic funds allocated

    Systems for channeling climate funds to local governments set up

  • 12 BUILDING THE FUTURE WE WANT Stories from Bangladesh, Bhutan, Indonesia, Lao PDR, Mongolia, Myanmar, Nepal, Philippines, Thailand

    BUILDING THE FUTURE WE WANT Stories from Bangladesh, Bhutan, Indonesia, Lao PDR, Mongolia, Myanmar, Nepal, Philippines, Thailand

    12

    Resilience of fishing communities

    Research Institutions

    Building river embankments

    Climate resilient infrastructure

    Climate resilient farming

    Raising bore-wells

    Impacts of Climate Change Losses in

    agricultural production

    Cyclones Poisoning of

    ground water Losses in

    biodiversityErratic weather

    patterns

    Floods

    Community resilience

    International donors Government of Bangladesh

    National fiscal framework

    Local fiscal framework

    Local governments

    Assesses climate funds coming in Improves alignment of funds to national priorities

    Community Risk Assessment Mapping of hazards & resources Risks prioritized Plans of Action

    The poor are the most affected Damages in

    infrastructure

    Climate change adaptation activities

    This year floods have damaged paddy fields and all the village infrastructure. We even had to

    move our house from place to place. Farmer, Chittagong

  • BUILDING INCLUSIVE GREEN ECONOMIESStories from Bangladesh, Bhutan, Indonesia, Lao PDR, Mongolia, Myanmar, Nepal, Philippines, Thailand

    13

    for the goal of climate change mitigation and adaptation in Bangladesh and how best to align them with national and local level activities. At the national level, there are multiple funding mechanisms being implemented like the Bangladesh Climate Change Resilience Fund (BCCRF) and the Bangladesh Climate Change Trust Fund (BCCTF). However, the Government at the central level has increasingly become aware of linking funding mechanisms to the work that local government institutions are carrying out and eke out better methods of channelling funds to locally based mitigation and adaptation projects. By adopting this approach, the Government can better plan and prioritize climate change investments across the country in a systematic way.

    Fulchhori Union is one of eight hotspots where the Local Climate Fiscal Framework is being piloted. Every year with the rains and the flooding of the rivers, the villagers find their croplands submerged for months. The loss of food and the poisoning of groundwater has left the population struggling. Small-scale adaptation mechanisms that villagers themselves can pioneer, such as building river embankments and raising bore-wells, have far-reaching effects on health, maternal and child mortality.

    These mechanisms will receive a much-needed impetus with the implementation of the Local Climate Fiscal Framework. Speaking about this, the...

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